On Tuesday, Volkswagen revealed its strategy to introduce an affordable electric vehicle model, responding to the rising competition from leading Asian companies excelling in battery technology. Volkswagen aims to manufacture electric cars tailored for the European market at approximately 20,000 euros ($21,746) with a global debut scheduled for 2027.

2027 Debut: Volkswagen Affordable EV

Volkswagen is moving cautiously in advancing its electric vehicle initiatives due to sluggish demand and growing competition from foreign automakers, particularly domestic rivals in China, its largest market.

According to Reuters, Volkswagen plans to create affordable electric EV to enhance its competitiveness against strong Chinese competitors. Europe's primary car manufacturer announced this initiative on Tuesday following the failure of discussions with Renault to collaborate on the project earlier in the month.

Volkswagen Chief Executive Oliver Blume stated that the focus is on introducing entry-level electric mobility designed for Europe within Europe. This strategy reflects a strong dedication to Europe as a manufacturing hub, aligning with European industrial policies and prioritizing the needs of European customers.

The initiative, known as ID.1, arises amidst the incursion of Chinese competitors into the European market, leveraging a significant cost edge of up to 30% over Western counterparts to seize market share and challenge traditional automakers on their native soil.

Volkswagen emphasized the importance of localizing production within Europe for the ID.1 project, a move intended to streamline component transportation routes and consequently lower emissions.

More About Volkswagen Budget-Friendly Car

According to Seeking Alpha, Volkswagen previously outlined its ID.1 concept as a futuristic vision for electric mobility, blending urban sophistication with state-of-the-art technology. The company envisions the ID.1 as a symbol of a fresh era characterized by eco-friendly and fashionable transportation in city environments.

As reported by Electrek, Volkswagen unveiled its ID 2all concept in March, offering a glimpse into the design of the upcoming affordable electric vehicle. Described as "spacious like a Golf" yet "affordable like a Polo," VW's ID 2all electric car is anticipated to be priced below $27,000 (25,000 euros), with plans for an even more budget-friendly model, potentially named the ID 1.

The ID 2all EV, built on a modified MEB platform, is projected to achieve a range of up to 279 miles (450 km). The ID 1 is expected to share components with the ID 2all but with smaller battery configurations, such as 38 or 58 kWh.

READ MORE: Hyundai's High-Powered N74 Hydrogen Supercar Nears Launch: Reports Claim

Challenges Ahead

Volkswagen has offered a sneak peek of the forthcoming ID 2all SUV. This affordable electric SUV is set to be revealed in 2026. As reported by The Economic Times, the German company, comprising a total of 12 brands, has heavily invested in expanding its electric vehicle lineup.

Affordable Chinese vehicles pose a challenge not only to Europe's largest automotive maker but also to European authorities.

Brussels drew Beijing's ire recently by initiating an anti-subsidy probe into Chinese electric automobiles, alleging that these vehicles could create unfair competition for local European automakers.

In a statement, Blume highlighted that Volkswagen's strategy to introduce an economical compact vehicle, favored by European customers, signals a strong dedication to Europe as a manufacturing hub, aligning with European industrial policies and prioritizing the needs of European consumers.

Volkswagen stated that for this new model, they would heavily focus on localizing production in Europe, emphasizing the positive impact on Europe as a key industrial center.

RELATED ARTICLE: Volkswagen Faces Recall Scrutiny Over 51,0000 ID.4 EV Units with Doors That Open

Copyright @ MOTORTIMES, All rights reserved. Do not reproduce without permission.